MIRA INFORM REPORT

Report Date :

12.11.2013

IDENTIFICATION DETAILS

Name :	MABROC TEAS (PVT) LTD

Registered Office :	# 400, Deans Road, Colombo 10

Country :	Sri Lanka

Date of Incorporation :	26.02.1988

Com. Reg. No.:	PV 165

Legal Form :	Private Limited Liability Company (In Operation)

Line of Business :	Manufactures & Exporters, Sellers of all kinds of Teas

No. of Employees :	Approximately 35,000 (Hayleys Group)

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – March, 31^st,2013

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Sri Lanka

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

SRI LANKA - ECONOMIC OVERVIEW

Sri Lanka continues to experience strong economic growth following the end of the 26-year conflict with the Liberation Tigers of Tamil Eelam (LTTE). The government has been pursuing large-scale reconstruction and development projects in its efforts to spur growth in war-torn and disadvantaged areas, develop small and medium enterprises and increase agricultural productivity. The government's high debt payments and bloated civil service have contributed to historically high budget deficits, but fiscal consolidation efforts and strong GDP growth in recent years have helped bring down the government's fiscal deficit. However, low tax revenues are a major concern. The 2008-09 global financial crisis and recession exposed Sri Lanka''s economic vulnerabilities and nearly caused a balance of payments crisis. Growth slowed to 3.5% in 2009. Economic activity rebounded with the end of the war and an IMF agreement, resulting in two straight years of 8% growth in 2010-11. Growth moderated to about 6% in 2012. Agriculture slowed due to a drought and weak global demand affected exports and trade. In early 2012, Sri Lanka floated the rupee, resulting in a sharp depreciation, and took steps to curb imports. A large trade deficit remains a concern. Strong remittances from Sri Lankan workers abroad have helped to offset the trade deficit.

Source : CIA

GENERAL - Basic information at a glance

a.	Name of Subject of Inquiry	:	MABROC TEAS (PVT) LTD
b.	Legal Form & Status	:	Private Limited Liability Company (In Operation)
c.	Managing Director	:	Niran Ravindra Ranatunga
d.	Primary Line of Business	:	Manufactures & Exporters, Sellers of all kinds of Teas
f.	Head Office & Place of Business	:	# 57/3, Hunupitiya Road, Kiribathgoda, Sri Lanka Tel. No: (00 94 11) 787 8000 Fax No: (00 94 11) 787 8078 Email: mabroc@mabrocteas.com
g.	Number of Employees	:	Approximately 35,000 (Hayleys Group)

COMPANY DETAILS - Registration and Shareholder Details

a.	Registration No	:	N (PVS) 4290
a.	Date of Registration	:	26^th February 1988
b.	Re-registration No	:	PV 165
b.	Date of Re-registration	:	16th July 2007
c.	Registered Office	:	# 400, Deans Road, Colombo 10.
d.	Board of Directors As At 29th May 2013	:	Niran Ravindra Ranatunga	Managing Director
			Roshan Malsri Hanwella	Director
			J. A. G. Anandarajah	Director
			Mohan P. Abeyakumar	Director
			W. Godfrey Roshan Rajadurai	Director
			K. Indrakeerthi Mahesha Ranasoma	Director
			Dilan Shammi Wijesekera	Director

Registration and Shareholder Details

e.	Issued Share Capital	:	Rs.90,000,000.00
f.	Nominal Value of Share	:	Rs.10.00 (Total Number of Shares 9,000,000)
g.	Share Holders As At 29th May 2013	:	Share Holders	No. of Shares
g.	Share Holders As At 29th May 2013	:	Kelani Valley Plantations PLC (Incorporated in Sri Lanka)	9,000,000
h.	Auditors	:	Ernst & Young
i.	Company Secretaries	:	Hayleys Group Services (Pvt) Ltd
j.	Bankers	:	Peoples Bank Seylan Bank PLC Sampath Bank PLC

Details of Directors

Name	Niran Ravindra Ranatunga
Gender	Male
Nationality	Sri Lankan
National ID No	611780176 V
Date of Birth	26^th June 1961
Age	52 Years

Name	Roshan Malsri Hanwella
Gender	Male
Nationality	Sri Lankan
National ID No	603000153 V
Date of Birth	26^th October 1960
Age	53 Years

Name	Mohan P. Abeyakumar
Gender	Male
Nationality	Sri Lankan
National ID No	511291887 V
Date of Birth	8^th May 1951
Age	62 Years

Name	W. Godfrey Roshan Rajadurai
Gender	Male
Nationality	Sri Lankan
National ID No	630013780 V
Date of Birth	01^st January 1960
Age	53 Years

Name	K. Indrakeerthi Mahesha Ranasoma
Gender	Male
Nationality	Sri Lankan
National ID No	643521245 V
Date of Birth	17^th December 1964
Age	48 Years

Name	Dilan Shammi Wijesekera
Gender	Male
Nationality	Sri Lankan
National ID No	803654050 V
Date of Birth	30^th December 1980
Age	32 Years

Name	J. A. G. Anandarajah
Gender	Male
Nationality	Sri Lankan
National ID No	491463481 V
Date of Birth	25^th May 1949
Age	62 Years

FINANCIAL DETAILS - Most recent available Financial Information

THE COMPANY HAS DECLINED TO PROVIDE INFORMATION ON ITS FINANCES

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability are not required to make public disclosure of their annual financials. Therefore no financials are available for this entity

CURRENT INVESTIGATION

· History

The Subject Company MABROC TEAS (PVT) LTD is a Private Limited Liability Company incorporated on 26^th February 1988 under registration number N (PVS) 4290 and then the company was re-registered on 16th July 2007 under registration number PV 165.

· Location

The subject company is located at # 57/3, Hunupitiya Road, Kiribathgoda. The client is Hayleys Group Head office address.

The subject company tea comes from 19,492 hectares of plantation land that includes 38 tea gardens, 1 instant tea factory, 2 Green tea factories and 30 Black tea factories that produce 15 million kilo grams of tea annually.

· Operational Details

General

The subject company primary line of business is manufacture and export of all kind of teas.

A member of the Hayleys Group, Mabroc Teas (Pvt) Ltd is the tea marketing arm of Kelani Valley Plantations PLC and Talawakelle Tea Estates PLC.

The subject company has earned certified by HACCP and ISO 22000: 2005 and ISO 9001: 2008

Products

Tea Bags, Bulk Tea, Black Tea, Green Tea, Herbal Tea, Specialy Tea, Tea Packets, and Flavoured Tea

· Country

Mabroc Tea is exported to Australia, Austria, Czechoslovakia, Estonia, Germany, Iraq, Japan, Latvia, Russia, Saudi Arabia, Syria, UAE, UK, Ukraine and USA.

· No of Employees

Approximately 35,000 (Hayleys Group)

· Financial Data

Based on the corporate laws of Sri Lanka, legal entities which are Private Company with Limited Liability is not required to make public disclosure of their annual financials.

Therefore no financials are available for this entity

· Trade references

Member of Global G.A. P (Good Agricultural Practices)

Member of the Ethical Tea Partnership ( ETP) – UK Programme

The Export Development Board

National Chamber of Exports

· Credit Recommendations

Since no financial information has been forthcoming from the company, it is not possible to comment on the merits or otherwise of the company.

No computerised data bases exist to make checks whether the partners or the company has any legal action or lawsuit initiated against any of them but informal (but not in-depth) checks do not indicate any such cases in the public knowledge.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.63.30
UK Pound	1	Rs.101.36
Euro	1	Rs.84.60

INFORMATION DETAILS

Report Prepared by :

NNA

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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